- Georgia has issued new VAT rules for barter transactions, especially those involving real estate.
- The amendment clarifies how to calculate the taxable amount when payments include both cash and non-cash consideration.
- VAT must be based on the value of the compensation received or to be received, excluding VAT, so the exchanged items/services must be assigned a monetary value.
- If an independent appraisal shows the market value is lower than the agreed price, the contractual value will still be used for VAT if the deal is at arm’s length and not artificially priced.
- The changes took effect on May 20, 2026.
Source: bm.ge
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Georgia"
- Georgia Updates Sales Tax Administration Under Streamlined Agreement
- Georgia Finance Ministry Rejects Proposal to Raise VAT Registration Threshold
- Georgia Announces Q3 2026 VAT Deadlines for Nonresident Digital Service Providers
- Georgia Clarifies VAT Treatment of Barter Transactions
- New Public Decisions Issued by Finance Minister on VAT and Income Tax
